Cash sales accounted for 52.3% of all deals closed in Palm Beach in Q2
The Miami Real Estate Association reports that Palm Beach County continued its upward trend in total home sales in the second quarter of 2021, as pent-up demand as more US individuals and businesses relocate to the United States. South Florida and record mortgage rates fueled transactions.
Total Palm Beach County home sales jumped 95.1% year-on-year, from 6,055 to 11,813. Single-family home transactions in Palm Beach increased 63.8%, from 3,660 to 5,996. Sales of existing condos in Palm Beach increased 142.9%, from 2,395 to 5,817.
“Palm Beach County home sales are up even when you compare them to two years ago,” said JTHS-MIAMI President Bill Mate. “Luxury home sales continue to spearhead the increase in total transaction numbers and dollar volume as more American individuals and businesses relocate to South Florida. “
Lack of inventory at certain price points impacts sales, especially for single-family homes. The increase in housing starts and the increase in the number of sellers listing properties in 2021 should help to alleviate the lack of supply.
Palm Beach luxury sales jump 213.3% as buyers on the northeast and west coasts relocate
Luxury single-family home transactions in Palm Beach County ($ 1 million and over) jumped 213.3% year-on-year to 1,034 transactions in 2Q 2021. Luxury condo sales in County of Palm Beach grew 336% to 484 transactions in 2Q 2021.
Record interest rate; a record S&P 500; the attractiveness of stable assets in a volatile economy; homebuyers leaving the tax-burdened northeastern and west coast states to buy in Florida (no state income tax); and work-from-home and distance-learning policies have all combined to create a strong market for luxury single-family properties.
Palm Beach owners’ home equity rises as many pay lower mortgage payments
With interest rates still at record highs, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they do this when their wealth (the equity in their home) has increased dramatically. Home equity can be used for renovations, college loans, and more.
Median single-family home prices in Palm Beach increased 29.7% year-over-year, from $ 370,000 to $ 479,900. Median prices of existing condominiums in Palm Beach increased 20% year-over-year, from $ 200,000 to $ 240,000.
Rising median prices are a trend nationwide, as record mortgage rates and the increased availability of distance work and education have accelerated housing demand. Low stock versus high demand causes prices to increase.
If mortgage rates resume their ascent, home price growth should slow down accordingly. Additionally, as more sellers list properties in 2021, increased inventory should facilitate growth in median prices.
Palm Beach’s dollar volume totals $ 8.7 billion, demonstrating the powerful impact of housing
While other industries have struggled over the past year, housing has boosted the economy nationally and locally. For every two homes sold in the United States, one job is created. The Miami dollar volume shows the impact of housing on the local economy.
Palm Beach single-family home dollar volume increased 161.2%, from $ 2.3 billion to $ 6.1 billion. The dollar volume of existing condos in Palm Beach increased 223.4% to $ 2.6 billion. Sales do not include the Palm Beach new construction condo market.
Non-distressed sales accounted for approximately 99.2% of all closed residential sales in 2Q 2021 compared to 97.1% in 2Q 2020. Only 0.8% of all closed residential sales in Palm Beach were in difficulty in 2Q 2021 , including REO (bank properties) and short sales, up from 2.9% in 2Q 2020.
Short sales and REOs accounted for 0.2% and 0.6% of total Palm Beach sales in 2Q 2021, respectively. Short sale transactions were down 36.7% year-on-year while REOs were down. dropped by 51%.
Falling mortgage rates made home purchases more affordable in 2021. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage was on average 3.0% in 2Q 2021, down by compared to the 3.23% average recorded in the same quarter a year earlier.
Strong demand for homes statewide, fueling double-digit sales increase nationwide
Statewide, closed second-quarter sales of existing single-family homes increased 43.3% year-over-year (to a total of 98,414), and were up nearly 16% from in 2Q 2019. Sales growth in the condo and townhouse resale market was even stronger, up 117% (a total of 48,976 sales) compared to last year and nearly 44% from two years ago, according to data from Florida Realtors Research in partnership with local real estate boards / associations. Closed sales typically occur 30 to 90 days after the sales contracts are written.
The statewide median selling price of existing single-family homes in the second quarter of 2020 was $ 345,000, up 24.3% from the same period a year ago, according to data from the Florida Realtors Research department in partnership with local real estate boards / associations. The statewide median price of condominium and row properties in the quarter was $ 250,000, up 20.8% from a year ago. The median is the midpoint; half of homes sold for more, half for less.
Nationally, the median selling price of existing single-family homes rose 22.9% to $ 357,900, an increase of $ 66,800 from a year ago. All regions saw double-digit year-over-year price growth, led by the Northeast (21.8%), followed by the South (21.0%), West (20 , 9%) and the Midwest (17.1%).
Increase in New Listings: More Sellers Listing Properties Should Help Alleviate Lack of Supply
New listings for Palm Beach County single-family homes increased 26.2% year-on-year in 2Q 2021, from 5,041 to 6,360. New listings for Palm Beach County condos increased 19.1 % YoY in 2Q 2021, from 4,312 to 5,135. This is a sign that more and more sellers are entering the market.
At the current sales rate, the number of active listings represents 1.3 months of inventory for the single-family home (seller’s market) and 1.5 months for the condominium (seller’s market). A balanced market between buyers and sellers offers between six and nine months of supply stock.
Palm Beach real estate had 4,484 active listings in 2Q 2021, down 58.6% from 10,821 listings in the same period last year. The inventory of single-family homes fell 54.7%, from 4,989 to 2,260. The inventory of existing condos in Palm Beach fell 61.9%, from 5,832 to 2,224.
Palm Beach Real Estate Attracting Multiple Offers, Buyers Over List Price
With low inventory, especially for single-family homes, Palm Beach properties attract multiple bids and buyers exceed the list price. The median percentage of the original list price received was 99.4% for single-family homes and 96.8% for condos in 2Q 2021.
The median time to contract for single-family home listings was 12 days, down 73.3% from 45 days in 2Q 2020. The median time to contract for existing condos was 23 days , a decrease of 61.7% compared to 60 days in 2Q 2020.
The median time to sell single-family homes fell 34.8%, from 92 days to 60. The median time to sell existing condos fell 31.7%, from 101 to 69.
Palm Beach cash sales more than doubled from national figure in 2Q 2021
Cash sales accounted for 52.3% of sales made in Palm Beach in Q2 2021, up from 37.9% in Q2 2020. About 23% of home sales in the United States are made in cash, according to the latest statistics from the NAR.
The high percentage of cash buyers reflects Miami’s leading position as the predominant US real estate market for foreign buyers, who tend to buy with all cash, as well as some moving to more expensive US markets which are able to buy more with their real estate profits. Sales.
Cash sales accounted for 61.5% of all existing condo sales in Palm Beach and 43.3% of single-family transactions.